PCP finance

[BusyBuilder]

has anyone used this method of getting a motorhome ?

 

[B+W vanman]

Seems to be focused on monthly payments rather than overall cost .it's a lease agreement rather than a purchase .
Many people have to give the car back as they do not have the cash to.pay the final payment .

It's is not always clearly understood the full cost if the purchaser want to own a vehicle outright.

I understand many people have continuous HP agreements and never pay a car off as they change it every 2/3 years.and they just look at it as a monthly bill. That has to be paid.

It's personal choice as long as the purchaser is fully aware of the implications

I don't like debt it makes me very uncomfortable. I like to buy it so I owe nothing to no one. If circumstances change. I can sell/dispose of vehicles. Which I feel is a better option than having them taken away.

Yes I have bought on interest free credit when I needed a reliable car fast. But I didn't like it especially as the car was stolen the same month it was paid for ...so no car not paid full value by insurance. So next one was bought in cash /credit card and paid off in full

15 years later it was sold on it never cost me a penny except service and tyres

And depreciation………….the biggest expense of car ownership

 

[The Wino]

And depreciation………….the biggest expense of car ownership

It certainly is especially if you insist on swapping frequently to pay the most! We typically buy 6 months old at which point I would defy anyone to tell much difference from new and keep 7 or 8 years. Just sold our last one a Skoda Octavia estate bought for £12500 in late 2016 from motorpoint sold this month for £5k after adding 100k miles. Just routine servicing apart from a new heater matrix ( evidently a known weak point). I wonder what pcps to cover that time and mileage would have cost to have a newer car?. For some people it's worth it but I suspect that the majority never do the sums.

 

[seasideBill]

My understanding is at the end of the PCP agreement you hand the vehicle back and walk away.

Not always, last PCP I had on contract expiry I was offered £11.5k part exchange against another vehicle I liked or balloon payment of £10.3k. Obviously the price market value of the new vehicle needs to be factored in when assessing the deal, but balloon payments aren’t always above cars value and better than walking away. Always plenty of variables in such arrangements and incentives come and go like service plans and extended warranty which I reckon saved me upwards of £1000.

 

[Nanniemate]

It certainly is especially if you insist on swapping frequently to pay the most! We typically buy 6 months old at which point I would defy anyone to tell much difference from new and keep 7 or 8 years. Just sold our last one a Skoda Octavia estate bought for £12500 in late 2016 from motorpoint sold this month for £5k after adding 100k miles. Just routine servicing apart from a new heater matrix ( evidently a known weak point). I wonder what pcps to cover that time and mileage would have cost to have a newer car?. For some people it's worth it but I suspect that the majority never do the sums.

I only got £2500 for mine but only paid £8000 for it.I bought as they introduced a new model so it was the older body shape and they wanted shot of it , I was happy to help

The engine was worth more than the car.

^{_{Subscribers  do not see these advertisements}}

 

[enark]

It certainly is especially if you insist on swapping frequently to pay the most! We typically buy 6 months old at which point I would defy anyone to tell much difference from new and keep 7 or 8 years. Just sold our last one a Skoda Octavia estate bought for £12500 in late 2016 from motorpoint sold this month for £5k after adding 100k miles. Just routine servicing apart from a new heater matrix ( evidently a known weak point). I wonder what pcps to cover that time and mileage would have cost to have a newer car?. For some people it's worth it but I suspect that the majority never do the sums.

Not an EV then - at that price?

 

[Nanniemate]

Not an EV then - at that price?

Were EVs invented In 2016

 

[DT]

YT Car Finance Simplified sells a spreadsheet the allows you to work with numbers of finance. He had plenty of detailed videos on PCPs Leases Contract Hire Loans etc.

 

[enark]

Were EVs invented In 2016

Oh yes….

'We bought a milk float on eBay for £2k and turned it into a zero-waste shop'

Lisa Jones and her husband Stephen Thomas started a zero-waste shop, The People's Pantry, in August last year

www.mylondon.news

 

[The Wino]

Not an EV then - at that price?

I expect our EV to be similar although over 100 k miles if it was worth nothing it would probably be cheaper!

^{_{Subscribers  do not see these advertisements}}

 

[bigtwin]

Norton motorcycle had a pcp deal just before new year, a £13500 bike could be on pcp for £39 down and £39 pm. Over two years it was a no brainer if you fancied a new bike.

It was £69 deposit and £69/month for 2 years; still a no brainer though.

The Norton Commando PCP deal was better if you went for a slightly used model. £22 deposit and £22 per month, now that really is a deal.

That was a one-off deal on a single bike (from Judd Motorcycles) and was actually an error on their part but, nonetheless, they honoured the deal with the bloke who ‘bought’ it.

Ian

 

[Coolcats]

Not so. I negotiated for cash purchase and got a significant discount. The PCP 0% discussion happened after we had agreed the discounted cash price. In the small print, the dealer made £200 on the finance. We think we got a good deal.

Whatever the details of the deal both you and the supplier were happy with the sale and to be honest it’s no one else’s business.

PCP is a common way for vehicle ownership if it fits what you want and need happy days.

For me a straight loan or saved money has worked but….if I needed or had a loan for something else or did not want to spend the cash a PCP is an alternative. Everyone’s finance is different.

 

[The Wino]

I expect our EV to be similar although over 100 k miles if it was worth nothing it would probably be cheaper!

Top of the head sums on an EV tariff and 3 miles per kWh electricity for 100 k miles would cost roughly £2500
On a diesel at 50 mpg it would cost about £13 k. Makes the EV look cheap!

 

[Rapides]

Been running new Fords on PCP at 0% APR for years. Once you look at cars as an overhead rather than an asset, a PCP makes sense. It does for me, anyway.

Not a model for a mortorhome purchase, however.

 

[Bill-H]

Unless or until you pay the balloon payment at the end of the contract, you are neither buying the car or owning the car - you are just renting or leasing the vehicle, usually with some fairly tight restrictons, you have a set milage and maintenance schedule (are you restricted by where you can have it serviced?) and I believe they are fairly thorough with the final inspection when you return it at the end - checking for each and every blemish in order to reduce the final valuation perhaps.
Rather like the old Hire Purchase, doesn't become yours until the last payment is made.

^{_{Subscribers  do not see these advertisements}}

 

[Nanniemate]

Unless or until you pay the balloon payment at the end of the contract, you are neither buying the car or owning the car - you are just renting or leasing the vehicle, usually with some fairly tight restrictons, you have a set milage and maintenance schedule (are you restricted by where you can have it serviced?) and I believe they are fairly thorough with the final inspection when you return it at the end - checking for each and every blemish in order to reduce the final valuation perhaps.
Rather like the old Hire Purchase, doesn't become yours until the last payment is made.

I remember one lease vehicle that the assigned driver had wrecked it was cheaper to buy it than pay the penalties

 

[dunnah01]

It would cost about £10k/annum to borrow the van on PCP so it makes more sense just to rent a Moho when you want one